Zhenhai petrochemical addresses Q3 2025 performance, investor concerns

Zhenhai Petrochemical Engineering Co., Ltd. (the "Company") hosted its Q3 2025 performance briefing on October 28, 2025, addressing various investor inquiries. Management highlighted the company's commitment to enhancing profitability and core competitiveness through "quality improvement and increased returns" initiatives. The company emphasized that its controlling shareholder and state-owned assets regulator highly prioritize the realization of the company's value and market performance, setting comprehensive and long-term assessment standards for the board and management, focusing on both intrinsic value and capital market performance.

Regarding R&D, Zhenhai Petrochemical invested tens of millions in R&D over the past three years, with a planned budget of over RMB 31 million for 2025. R&D expenditure accounted for 6.48% of operating revenue in 2024. The company employs a robust evaluation system, tracking metrics like technology conversion rates, patent applications, and order conversion rates from R&D projects. In terms of business progress, the company reported an order backlog of RMB 270 million at the end of 2024, which grew to RMB 420 million by June 30, 2025. This indicates positive operational momentum, and the company plans to provide more systematic disclosures on new orders and major project wins in future reports to enhance transparency.

The company also discussed its "industrial operations and capital operations" strategy, aiming for high-quality development and value creation. This includes optimizing industrial layout, focusing on high-end new chemical materials and environmental technologies, and pursuing strategic acquisitions. The company reaffirmed its commitment to maintaining stable cash dividends and will formulate a reasonable dividend plan for 2025 based on profitability.